Transnet is appealing a recent court ruling that dismissed its urgent bid to force IT services provider Gijima to complete critical data migration and disengagement work following the expiry of a R1.5 billion IT contract.
ITWeb first reported last month that the court ruled that although the contract had run its course, Transnet was not technically prepared to receive the services it was trying to enforce.
In a detailed judgement delivered by Judge AJ Minnaar, the court found that Transnet had acted prematurely and had not fulfilled its own obligations under the master services agreement with Gijima.
Earlier this year, Transnet sought an urgent court order compelling Gijima to finalise its disengagement from Transnet’s IT environment – including migrating data centre services, SAP workloads and the company’s Active Directory – by 30 June 2025.
Transnet also wanted an interdict preventing Gijima from disrupting any services during the transition.
Gijima opposed the application, arguing that key factual disputes remained and that it could not complete the required work because Transnet had not provided a workable transition plan or shown that it was technically ready.
“Take notice that Transnet will make application to the above honourable court on the date and time to be arranged with the registrar for leave to appeal against the judgement and orders, as is more fully set out below, delivered by his lordship, Minnaar AJ on 16 October 2025.
“Take further notice that Transnet will seek leave to appeal to the full court of this division, alternatively, to the Supreme Court of Appeal, as may be directed by this Honourable Court in terms of section 17(6) of the Superior Courts Act, 10 of 2013, as amended,” Transnet says in court documents seen by ITWeb.
Transnet is basing its appeal on 17 grounds, arguing that the state-owned company, together with partner Microsoft, “have the necessary technical capacity, infrastructure and equipment to immediately disengage, migrate and host the majority of the remaining services which were not mainframe services”.
In its application, Transnet argues that the court erred in several respects, including misinterpreting Gijima’s obligations to migrate both mainframe and non-mainframe applications.
It also says the court failed to recognise Transnet’s technical readiness and the transition plans already provided to Gijima, and overlooked Gijima’s refusal to cooperate in providing access and information necessary for migration.
According to the state-owned company, the court also misconstrued the terms of the Master Services Agreement and related disengagement plans, and made adverse findings on costs despite Gijima’s obstructive conduct.
Transnet contends there are reasonable prospects of success on appeal, emphasising that Gijima’s non-cooperation risks unbudgeted costs and delays in completing the disengagement process.
This is not the first time the disputed contract has made headlines. In 2018, German IT firm T-Systems South Africa withdrew from a disputed R1.5 billion Transnet IT services contract, paving the way for local company Gijima to take over the five-year deal.
The move ended a lengthy court battle after Transnet’s new board, appointed by the late public enterprises minister Pravin Gordhan, sought to reverse the earlier award. Gijima, which offered to deliver the services, hailed the outcome as a major victory and pledged to modernise Transnet’s IT systems.
The resolution came amid broader governance reforms at Transnet, including the dismissal of former CEO Siyabonga Gama over tender controversies.
Gijima acquired T-Systems South Africa in 2020.
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